Summary
Colorado C.R.S. 39-22-104(4)(f)(III)(A), as amended by HB24-1142, increases the age 55-64 pension/annuity subtraction cap for tax years beginning on or after January 1, 2025 when:
- taxable Social Security benefits exceed the $20,000 cap, and
- AGI is <= $75,000 for individual filers or <= $95,000 for joint filers.
In that case, the cap is increased to the taxable Social Security amount.
PolicyEngine-US currently appears to keep the age 55-64 Social Security subtraction capped at gov.states.co.tax.income.subtractions.pension.cap.younger ($20,000) regardless of AGI. The current co_social_security_subtraction_indv formula on upstream/main does not include the 2025 AGI thresholds or cap increase.
Axiom context
Axiom encoding of us-co/statute/39/39-22-104/4/f surfaced this while mapping generated RuleSpec outputs to the PolicyEngine oracle. The generated statutory outputs include:
individual_filing_agi_limit_for_age_fifty_five_to_sixty_four_social_security_cap_increase = $75,000 from 2025joint_filing_agi_limit_for_age_fifty_five_to_sixty_four_social_security_cap_increase = $95,000 from 2025
Expected
For a 2025 taxpayer age 55-64 with taxable Social Security benefits above $20,000 and AGI at or below the applicable filing-status threshold, PE should allow the Social Security portion of the Colorado pension/annuity subtraction up to the taxable Social Security amount, not just $20,000.
Likely files
policyengine_us/variables/gov/states/co/tax/income/subtractions/pension/co_social_security_subtraction_indv.py- possibly new parameters under
policyengine_us/parameters/gov/states/co/tax/income/subtractions/pension/ for the 2025 AGI limits.
Summary
Colorado C.R.S. 39-22-104(4)(f)(III)(A), as amended by HB24-1142, increases the age 55-64 pension/annuity subtraction cap for tax years beginning on or after January 1, 2025 when:
In that case, the cap is increased to the taxable Social Security amount.
PolicyEngine-US currently appears to keep the age 55-64 Social Security subtraction capped at
gov.states.co.tax.income.subtractions.pension.cap.younger($20,000) regardless of AGI. The currentco_social_security_subtraction_indvformula on upstream/main does not include the 2025 AGI thresholds or cap increase.Axiom context
Axiom encoding of
us-co/statute/39/39-22-104/4/fsurfaced this while mapping generated RuleSpec outputs to the PolicyEngine oracle. The generated statutory outputs include:individual_filing_agi_limit_for_age_fifty_five_to_sixty_four_social_security_cap_increase= $75,000 from 2025joint_filing_agi_limit_for_age_fifty_five_to_sixty_four_social_security_cap_increase= $95,000 from 2025Expected
For a 2025 taxpayer age 55-64 with taxable Social Security benefits above $20,000 and AGI at or below the applicable filing-status threshold, PE should allow the Social Security portion of the Colorado pension/annuity subtraction up to the taxable Social Security amount, not just $20,000.
Likely files
policyengine_us/variables/gov/states/co/tax/income/subtractions/pension/co_social_security_subtraction_indv.pypolicyengine_us/parameters/gov/states/co/tax/income/subtractions/pension/for the 2025 AGI limits.